Answer:
Rate = r= 8.6 %
Step-by-step explanation:
For compound interest
A= P( 1 +r/n)⁴t= 1000(1.0215)⁴
from above we have 1.0215= 1+ 0.0215= 1+r/4
0.0215=r/4
r= 0.0215 *4=0.086= 8.6 %
where A is the amount
P= Principal
interest Rate= r
n= number of times interest is applied per year
t= number of years (time)
for t= 1
A= 1000(1.0215)⁴= 1000(1.0888) =$ 1088.813
for t= 2
A= 1000(1.0215)⁸= 1000( 1.18554)= $1,185.515
